Apple hits $4trn amid market rally and hot iPhone 17 sales

Apple’s valuation broke $4 trillion Tuesday, as the tech giant benefitted from a renewed stock market rally, and investor optimism ahead of its earnings later this week where it is expected to report strong sales of its new iPhone model.

The tech giant rode a fresh stock market rally this week to hit the milestone, after the U.S. and China appeared to cool tensions over the weekend, setting the scene for President Donald Trump and China President Xi Jinping to strike a trade deal this week.

Markets were also looking ahead to the Federal Reserve's upcoming decision on interest rates on Wednesday, as well as a flurry of tech giant earnings, including Apple's on Thursday.

Nvidia has been the lone member of the $4 trillion club for some months. Apple joins it with shares up more than 9% this year as investors price in a hotter iPhone cycle and more revenue from its services arm.

Early iPhone 17 demand has been a driving factor for the stock in recent weeks. Counterpoint’s launch-window data showed sales in the U.S. and China running about 14% ahead of last year’s iPhone 16 earlier this month, with the base 17 nearly doubling in China. This cycle, Apple kept prices steady and added an ultra-thin, titanium-framed “iPhone Air”, which went on sale in China on Wednesday after a short delay.

Services, the company’s music, iCloud, app store, and streaming arm, has helped too. In the June quarter, Apple posted $94 billion in revenue, up 10% year over year. The services division made up a record $27.4 billion of that, and combined with the company's hardware dominance helps to insulate it amid unpredictable iPhone cycles.

Arguably investors’ favorite tailwind, however, has been capital returns. In May, Apple’s board authorized another $100 billion in repurchases, less than last year’s record, but still a buyback that tightens the float and supports earnings per share.

Elsewhere, the company’s on-device AI features suite called Apple Intelligence is rolling out across iPhone, iPad, and Mac, giving the company a privacy-first angle on AI that’s designed to nudge upgrades without the cloud-spend arms race. The more Apple can tie everyday tasks to Apple-only AI, the sturdier the upgrade cycle becomes, analysts say.

There are still caveats include tariff costs, regulatory concerns, and a disappointing AI rollout that has been particularly cautious in China. But the driving force of iPhone demand, services mix, and disciplined cash returns remains. Investors will hope they are all on show at earnings on Thursday.

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